China HR sheet/coil daily recap – October 10

China HR sheet/coil daily recap – October 10

After the National Holidays, Shanghai and Tianjin opened their markets on Saturday, October 8. Lecong on the other hand, remained open throughout the past week. On Saturday, Shanghai medium hot rolled sheet/coil (HRS&C) prices experienced a brief increase to RMB 3’200/ton ($394), but decreased slightly on Sunday. The Tianjin market opened at the closing price of the last trading day, but dropped considerably on Sunday. The Lecong market showed continuous, slight price cuts. The cumulative decrease range reached RMB 80/ton ($10) by Sunday evening. Batches of new products arrived in Shanghai and Lecong during the holidays. On Monday (October 10), prices in these three regions fell considerably. HRS&C traders in Shanghai decreased their price quotations continuously, reaching levels below what had been seen prior to the holidays, i.e. RMB 3’150/ton ($388). The market conditions did not pick up. Prices in Tianjin further declined, and medium HRS&C prices remained locked in a continuous downward trend. HRS&C prices in Lecong also exhibited an obvious decline. Compared to Sunday, the average of 5.75mm*1500*C SS400 prices in Tianjin, Shanghai and Lecong was RMB 3’170/ton ($390), down RMB 70/ton ($9); 2.75mm*1250*C Q235B/SPHC was RMB 3’361/ton ($414), down RMB 50/ton ($6); and imported 2.0mm*1250*C, excluding Tianjin, was RMB 3’474/ton ($428), down RMB 50/ton ($6). For details, please see the following: Shanghai On Monday morning, traders reduced their medium HRS&C prices across the board, with further declines coming in the afternoon. Prices of thin and imported products dropped continuously. On Wednesday, September 28, medium HRS&C prices were around RMB 3’150/ton ($388) and transaction volume was healthy. However, after the price reduction on Monday (October 10), there was not nearly as much activity. Meanwhile, batches of new products from Jiuquan Steel, Handan Steel and Tangshan Steel arrived in Shanghai. Prices of imported products prices also fell. The price for MMK (Russia) 2.0mm 08YU was at RMB 3’900/ton ($480), while the price of 1.8mm 08YU was at RMB 4’050/ton ($499). Thailand and Malaysia-origin 1.8mm SPHC prices were at RMB 4’050/ton ($499), while 2.0mm SPHC fell RMB 50/ton ($6) to RMB 3’950/ton ($487). Tianjin Traders quoted their prices of medium HRS&C at different levels. Prices of Tangshan and Benxi Steel were at RMB 3’150-3’200/ton ($388-394), with the prevailing market price closer to RMB 3’150/ton ($388) in the morning. However, prices were weak during the day on Monday, and the actual deal prices were even lower, i.e. RMB 3’100-3’130/ton ($382-385). Few transactions took place. The current inventory is slightly above normal levels. Lecong Medium HRS&C prices were down sharply, while thin products exhibited a slight price cut. The transaction situation was not good. In the morning, prices were quoted at different levels. Most traders slightly decreased their prices. There was not much business activity in Lecong market. The market prices further declined in the afternoon. Most imported products arrived in July and August. Some traders quoted their prices for Russia-origin 1.8mm 08YU at RMB 4’400/ton ($542) due to its high cost. The selling prices of newly arrived imported products were lower than those of domestic products. Russia-origin 2.0mm 08YU prices were around RMB 3’700/ton ($456). Batches of new products arrived in Lecong during the National Holidays. The transaction situation was not good. The current inventory level in Lecong is relatively high.